Magnets 2026: prices +100% MoM and new UH/EH technologies
May 2026 forever changed the landscape of the rare earth metals market. In just 30 days, the prices of neodymium and praseodymium oxide (NdPr) shot up by 100%. Such extreme volatility requires engineers and purchasing managers to change their strategies immediately. In response to the market chaos, Asian factories are implementing advanced coating methods (GBD) and extreme temperature grades (UH, EH), which drastically reduce the mass of raw material used. As DHIT, we import these solutions directly from our Chinese factory to warehouses in Poland, ensuring the continuity of the supply chain.
Supply for industry
Neodymium prices 2020-2026: from stability to chaos
To understand the scale of the current shock, let's look at historical quotes. While the years 2020-2024 were characterized by predictable, slow growth, May 2026 brought a total collapse of the supply curve.
| Period | NdPr price (PLN/kg) | Market context / cause |
|---|---|---|
| End of 2020 | ~210 PLN | Stable post-pandemic demand, moderate RES development. |
| Mid 2024 | ~360 PLN | Growing EV (electric vehicle) market. |
| May 2025 | ~420 PLN | Beginnings of the AI and data center boom. |
| May 2026 | ~840 PLN | Shock: +100% MoM. Strait of Hormuz blockades, ESG regulations in China, mass production of robots. |
It is worth noting that the price shock did not only affect neodymium. Heavy rare earth elements (HREE), such as dysprosium (Dy) and terbium (Tb), used for temperature stabilization of magnets, became nearly 130% more expensive in the same period. This directly hit the costs of building advanced servomotors.
What is grain boundary diffusion (GBD) and how does it save budgets?
- Why does it work? GBD increases coercivity (resistance to demagnetization at high temperatures) by 30%, using 50-70% less expensive dysprosium in the process.
- Where does DHIT get these magnets from? Our factory located in China produces SH, UH and EH grade magnets successfully using GBD technology. The finished goods go to our warehouse in Poland, which allows us to offer them at competitive rates despite stock market turbulence.
Miniaturization: practical examples and real savings
Switching to higher energy grades (e.g. from N38 to N55) combined with GBD technology allows engineers to reduce the dimensions of the magnet, which yields colossal financial savings at current prices.
- Dimensions (old vs new): The former N38 (MW 22x10 mm) magnet can now be replaced by an N55 (MW 15x8 mm) magnet with identical attractive force.
- Weight reduction: A change from 50 grams to just 30 grams per piece.
- Material savings: Around 40% on each produced motor.
- Profit in PLN: At a price of 840 PLN per kilogram, saving 40% of mass on one ton of magnets means a profit of about 336,000 PLN for the company's wallet.
Impact of the price shock on key industries
Humanoid robotics
One Tesla Optimus robot consumes 3.5 to 4 kg of neodymium in over 40 servomotors. With a production scale planned for hundreds of thousands of units, this is the main driver of global demand and current prices.
Automotive EV (electric vehicles)
A standard EV motor requires approx. 2-3 kg of magnets (SH/UH grades). Premium manufacturers (Tesla, BMW, Audi) pass the cost on to the customer (a markup of approx. +400 EUR to the car price), while smaller brands have to cut margins or switch to induction motors without magnets.
Commercial drones (DJI and others)
They require extreme miniaturization. Switching to EH grade magnets allows drones to operate in hot climates without the risk of losing thrust, while simultaneously reducing the weight of the rotors.
Medicine and wind turbines
Half-ton rotors in offshore wind turbines mean hundreds of kilograms of neodymium. In turn, in medicine (pumps, implants, MRI), the UH grade magnet guarantees decades of stability, which is critical for patient safety.
Case study
A guide for purchasing managers (B2B)
When price charts go vertically up (+100%), emotions are the worst advisor. During a raw material boom, it is easy to make mistakes and act under stress. Many buyers yield to pressure, executing panic purchases at the very peak, abandoning their original plan. The key to surviving in such an unstable market is iron discipline and sticking to a long-term strategy.
- When to buy? Execute orders in a contract model (quarterly), averaging the price. Do not block all your capital at the peak.
- How to negotiate? Ask for a quote on two variants: the current magnet and a smaller equivalent with GBD UH grade technology.
- Hedging (risk protection): Order from suppliers like DHIT. Thanks to our direct connection with our factory in China and a huge buffer warehouse in Poland, we are able to freeze the price for a specific production batch in advance.
Forecasts for the second half (H2) of 2026
Optimistic scenario: The launch of new refining lines outside China (e.g. facilities in Australia and the USA) and the stabilization of supply chains may trigger a correction and a 20-30% price drop relative to historical maximums from May.
Pessimistic scenario: If mass production of humanoid robots exceeds the one million unit mark faster than estimated, the market will experience a severe supply deficit, blocking access to UH/EH grades for smaller entities.
Expert commentary
"The current crisis is teaching the industry humility. This is not the time to wait for prices to fall back to 2024 levels – that train has already left. The companies that win this race are the ones that immediately redesign their devices alongside their suppliers, focusing on miniaturization and GBD technology. Material savings are the only true cost optimization today."
— expert in imports and magnetic technologies, DHIT Sp. z o.o.
FAQ – questions and answers
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niedziela 2026-05-10T12:00:00